The beer market dynamics in Russia is approaching zero, yet major brewers are divided into those who developed considerably in 2017 and those who considerably reduced their volumes. For instance, company Efes has managed to substantially extend their sales due to restrained pricing policy and activity in the modern trade. Heineken has also demonstrated an excellent performance promoted by significant increase of advertisement budgets launching a non-alcohol sort of the title brand and unusual activity in the economy market segment. Carlsberg and AB InBev have been focusing on margins and lost a market share of their inexpensive brands. Serious dependence on PET package and mass enthusiasm about Zhigulevskoe have negatively impacted the most of big regional brewers, that have been for the first time pressed by the leaders in the key sales channels, especially in Volga and Central regions. In the small business there has been a noticeable slowdown in appearing of new restaurant breweries, yet the number of craft breweries has been growing rapidly. In 2018, the beer market is likely to grow a little, while the share of AB InBev Efes may decrease due to the integration. ...
“Catalogue of Russian Beer Producers 2018” includes 1070 businesses ranging from large subsidiaries of international companies to rather small restaurant and craft microbreweries.The catalogue includes 32 large breweries, 75 regional breweries, 693 industrial mini- and microbreweries as well as 270 restaurant breweries. ...
Global hop marketA local alternative to mass beer suggested by independent brewers has been successful and is now altering the global market. Beer is becoming more diversified, so transnational companies have to accept the new game rules and to switch focus to young and fast growing markets. All these processes increased the demand for aroma and bitter hop as well as their acreage expansion on two continents. However now there appeared a downward trend of alcohol consumption in the world, so even special sorts can soon turn to be sufficient. In this connection the dynamic American hop market is already facing some problems. EU hop producers have become more cautious, they are not racing to exceed the demand and look forward with more confidence, judging by the contract terms.
Hop Market in RussiaGermany still dominates the Russian market, yet over the recent two years one has been able observe a continuous success of Czech hop suppliers. Their expansion and growing popularity of hops from the United States became the drivers of supplies growth in 2016 despite the preceding modest harvest crop in the EU, as well as the factor of relative stability in 2017. In this connection, in 2017, the ratio of the varieties continued to shift towards the aroma ones, and the supplies of Magnum hop and other alpha varieties were reduced. However, the import of bitter hop pellets is partially replaced by extracts, especially from the major beer manufacturers. Total volumes of alpha acid supplies, according to our estimation, decreased by approximately 5% and returned to the level of 2015. Barth Haas Group continues dominating the hop products market; HVG also increased its weight. At the same time, Morris Hanbury significantly reduced the supplies in 2017.
Brandhouse refutes SAB’s market share claim
The battle for the country's beer market share highlights the intensifying beer war that has been ranging since Heineken NV terminated a contract allowing SAB to produce, market, sell and distribute Amstel lager in 2007.
SAB faces global brewing groups Diageo, Heineken International and Namibia Breweries Limited, which have re-entered the South African beer market via three-way joint venture Brandhouse.
Brandhouse markets, sells and distributes three established premium beer brands - Amstel, Windhoek and Heineken.
To entrench Brandhouse's market position, its two shareholders, Diageo and Heineken International, created Sadibeng Brewery in a bid to challenge SAB, their largest rival.
Gerald Mahinda, the managing director of Brandhouse, told I-Net Bridge/BusinessLIVE that the company had grown its market share slightly more than 12% to just below 14% of the total local beer market.
This is in contrast to SAB's latest figures.
On March 31, Norman Adami, MD and chairman of SAB, told I-Net Bridge that the brewer had clawed back to about 89% of market share in the past 12 months, from about 87%.
Before 2007, SAB had a historical average of about 98%.
Adami also admitted that Brandhouse was a "formidable" competitor that initially banged on SAB's door, demanding a 20% share of the beer market.
Underscoring the company's growth ambitions, Mahinda said the company planned to double capacity at its local production plant from three million hectolitres a year to six million hectolitres annually.
Brandhouse had increased its investment to EUR410 million from the originally planned EUR300 million in order to boost its capacity, he said.
The company would have ramped up production capacity to 4.5 million hectolitres annually by October 2011, he said.
Mahinda said Brandhouse was growing market share, declining to state what its market share target was.
"It is hard to set a target for market share because this is determined by a number of fundamentals including economic growth," he added.
However, he said the premium beer market was growing at almost triple the rate of the total beer market, at about 19%, reaching slightly over 23% share of the market segment.
Brandhouse's sales volumes grew 18% for the six months to February, compared with a comparable period in February 2010. Over the same period, the total South African beer market rose more than 7%.
Mahinda said Brandhouse, which also has Johnnie Walker in its brand portfolio, had a dozen competitors in the spirits and beer markets, noting that "we are in competition for the wallet".
Gavin Krenski, marketing director at Brandhouse, said the company intended to introduce new brands in market segments where it was underrepresented.
18 Apr. 2011